Prospects of the Nigeria Brewery Industry

Abstract

This study analyses the economics and determinants of a brewery industry (Guinness Nigeria Limited) with a view of establishing the future of breweries in Nigeria. The specific objectives were to estimate the factors influencing products production and determine the viability of products manufactured by the company. Multiple regression and the ordinary least square techniques were used to analyse the long-term (2006 - 2015) annual time series data observed for the study. The results showed that the major determinant of Stout, Harp and Malt production is demanded. As a significant input, it positively influences product production. The observed values of regression coefficients (R2) are 0.99349 (for Stout), 0.90981 (for Harp), and 0.99498 (for Malt), which indicates that they are reliable for determining the future of Guinness Nigeria Ltd. The results also showed that logarithm of demand for Stout production (LstoutD) of 13.5277, LharpD of 21.8439 and LmaltD of 12.2653 were projected respectively up to the year 2025, an indication that brewery production in the state is viable and that future is bright.